If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country
A. will be exploited by the second nation.
B. can consume more than they could without trade.
C. will have a lower standard of living.
D. will produce less than they could without trade.
Answer: B
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Which of the following is true about the Federal Reserve and its ability to prevent recessions? The Federal Reserve
A) can fine tune the economy and realistically hope to keep the economy from experiencing recessions. B) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions. C) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be. D) does not try to eliminate recessions, but instead focuses on preventing inflation.
International trade occurs because the opportunity cost of producing specific goods differs across
a. firms b. individuals c. regions of the U.S. d. countries e. households
At the point where total product is ________, marginal product is zero, but average product is still positive.
A. zero B. negative C. maximized D. minimized
Which of the following is a correct reason for stating that the United States has a fiduciary monetary system?
I. Our money is convertible to a fixed amount of silver or gold. II. Our money has a predictable value. A) I only B) II only C) Both I and II D) Neither I nor II